GBP/USD now looks to 1.2984 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, hinted at the idea that Cable might now look to the 1.2980 area following recent tops around 1.3340.

Key Quotes

“GBP/USD’s correction extended higher last week, and has reached the 50% retracement at 1.3343. This will ideally cap the market and attention should then revert to the 1.2984 2016-2017 uptrend. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The market has recently failed at the 1.3557 2014- 2017 downtrend and is viewed negatively”.

“Above 1.3344 (50% retracement) would trigger a deeper recovery to potentially 1.3418/1.3524”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.